Air crash: Airports paying high price

EVEN more businessmen and holidaymakers are likely to shun foreign travel after the American Airlines crash, plunging the industry into deeper crisis.

UK airports operator BAA fell 28p to 564p. The company had already said it would plough an extra £10m would into tightening security between now and March. It may now be forced to spend more.

BAA said after Monday's disaster: 'Security is at its highest levels. We have introduced secondary checks and more police patrols.' Heathrow passenger numbers fell 20.1% last month, in the wake of a 31.4% slump in transatlantic travel after 11 September. Some 1.5m fewer passengers passed through Heathrow and Gatwick in October compared with last year. Overall, passenger numbers at BAA's seven airports fell 12% to 9.8m.

BAA said the decline had stabilised, but analysts fear the latest tragedy could trigger another downturn. One analyst said: 'Confidence is already fragile and passenger numbers will take longer to recover if this crash was due to terrorist activity.'

However, the recent surge in demand for low-cost tickets shows 'people can overcome their nervousness if the price is right'. Austin Reid, chief executive of BMI British Midland, said airlines need to slash costs and air fares in order to survive.